Iranian rial hits record low as central bank injects $2 billion

The Iranian rial hit a new low this weekend as the central bank moved to stabilize the currency with a fresh injection of up to US$2 billion. The rial has lost over half its value in the past year, with the US dollar now trading at around 2.688 million rials, up from 2.632 million just a day earlier, according to free-market tracking websites. State television reported that state banks began selling dollars to shore up the currency amid worsening economic conditions.

The decline comes as Iran faces US sanctions and a naval blockade, which have crippled oil exports and cut off a key financial lifeline. With inflation exceeding 70%, ordinary citizens are struggling to afford basic necessities and rent. Many Iranians are turning to dollars, other hard currencies, or gold to safeguard their savings.

Mehdi Darabi, an aide to the central bank’s governor, attributed part of the rial’s decline to what he described as false predictions by US officials about the collapse of Iran’s economy. ‘The enemy is using this to affect the exchange rate of our currency,’ Darabi told state TV, insisting that the current fall was temporary.